Singapore’s Sembcorp to sell Chile water portfolio at a loss

07 February 2020 - 12:00 am UTC

Sembcorp Utilities, a subsidiary of Singapore-listed Sembcorp Industries, has agreed to sell its interest in Chile’s water sector at a loss amid worsening conditions in the local market, the company said in a stock filing yesterday.

The company will sell its portfolio, held by several wholly owned subsidiaries, for SGD 49m (USD 35m) to Spanish construction firm Sacyr.

The net asset value of the portfolio was SGD 107m, and the company will book an impairment of SGD 64m after including transaction taxes and costs, it said.

Sembcorp said that the price was agreed through a competitive sale process. The transaction is set to be completed by mid-2020, after receiving regulatory approval in Chile.

The firm said that the realizable value of the assets has been impacted by escalating operational and regulatory costs, as well as the deterioration of Chile´s economic, social and regulatory environment since October 2019.

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